OPINION: Uganda Doesn’t Need New Taxes, Just Organize Labour to Create More Revenue

By Francis Zaake

On Monday, I engaged in a brief tour of the streets of Kampala specifically to establish how business is conducted in town during evening hours. There are quite a number of things I realized that made me disdain the way Uganda neglects control over her labour in both formal and informal sector.

Our status as one of the poorest countries in the World imports that a big number of our People actually live in abject poverty, a reality that is endemic in our societies today, this can be attributed to the deliberate abdication of duties by those in leadership, to be a good leader you must always listen and take advise where your knowledge is wanting, to assume that you are “all knowing” tantamount to deliberate abdication of duties.

Doling out money to few individuals, grandstanding for political superiority and giving power to those that want to earn but have no product to offer on market for sale other than impunity has created an environment where the poor have to work hard and earn peanuts while those in power build mansions and cruise in SUVs from the efforts of the poor.

As a businessman I know that there are fundamental principles that govern financial growth, amongst them is the fact that one must have a product to sell on market for income generation, products may take the form of goods or services or both.

I strongly disagree with the myth that Ugandans are lazy People because at least individuals have always had a product to sell on market and the same is the reason youths dare the scorching sun selling chewing gum on the streets of Kampala all day long putting in much efforts but reaping less in terms of profit.

It does not matter what amount of capital one has in his business, the most important thing is understanding how the fundamental principles of business work. These principles are best applicable when the working environment is levelled.

Ugandans have a positive attitude about work which also means that the Country is endowed with laborers with the will power and determination not only to do work and develop themselves but also generate revenue for the state if empowerment and support to sell their products is given to them.

We have the Ministry of Gender, Labor and Social development whose mandate envelops creating an enabling environment for increasing employment opportunities and productivity for improved livelihoods and social security for all, especially the poor and vulnerable.

I think that this mandate cannot been actualized without a law controlling the utilization of labor especially in the informal sector where casual workers are overworked and yet paid less, there is need for government to establish the minimum amount of money that must be paid to professionals and casual laborers upon which negotiations may begin depending on the nature of work.

Considering minimum remunerations in both formal and informal sector will reduce the exploitation of workers which is an inevitable corollary to the big gap between the rich and the poor.

Uganda maintains the highest lending interest rate of 22.60 percent among member states of the East African Community which definitely implies that doing business in Uganda is more difficult in terms of establishment and survival than it is in other member states of the East African Community, this also makes the cost of manufacturing a product higher than it is in other member states and yet we sell in the common market which I think makes us less competitive in the common market.

In my viewpoint, I think that focussing on organizing and empowering our labor for business can earn us more revenue than increament and introduction of new taxes otherwise we shall keep draining from the few individuals who are persevering until they collapse.

Without having control over our labor as a country celebrating international labors day on 1st May, every year will remain wastage of resources. Happy international labors day celebrations.

The writer is a Member of Parliament for Mityana Municipality and Shadow Minister of East African Community Affairs.